Fonterra lauds New Zealand milk price in new financial figures
Source: dairynews.today
Australian farmers argue that Fonterra's record farmgate prices in New Zealand showcase potential for improved offerings in Australia.
In a recent announcement, Fonterra hailed the record-high milk prices for New Zealand farmers, with suppliers expected to receive between $NZ9.70 ($A8.86) and $NZ10.30 ($A9.40) per kilogram milk solids.
The midpoint price of $NZ10 ($9.13) sets a record, aligning with Fonterra's interim earnings report highlighting an 8% increase in net profit to $NZ729 million ($A665 million) and 14% revenue growth.
However, the situation has sparked debate among Australian farmers, who believe these figures reveal the potential for Fonterra and other Australian processors to increase their farmgate prices.
Australian Dairy Farmers president Ben Bennett emphasized that the pricing structure used by Fonterra in New Zealand raises questions about why Australian farmers receive comparatively lower prices.
This sentiment is echoed by industry leaders and farmers, reflecting lingering distrust resulting from historical pricing adjustments, such as the 2016 clawback by Fonterra and Murray Goulburn.
Despite these challenges, a recent move by Fonterra to offer a price step-up for the 2024-25 season might show willingness for change. Nevertheless, the ongoing discourse underscores the need for equitable pricing between Australian and New Zealand farmers, as many believe the processors prioritize profit over fair farmer compensation.
The midpoint price of $NZ10 ($9.13) sets a record, aligning with Fonterra's interim earnings report highlighting an 8% increase in net profit to $NZ729 million ($A665 million) and 14% revenue growth.
However, the situation has sparked debate among Australian farmers, who believe these figures reveal the potential for Fonterra and other Australian processors to increase their farmgate prices.
Australian Dairy Farmers president Ben Bennett emphasized that the pricing structure used by Fonterra in New Zealand raises questions about why Australian farmers receive comparatively lower prices.
This sentiment is echoed by industry leaders and farmers, reflecting lingering distrust resulting from historical pricing adjustments, such as the 2016 clawback by Fonterra and Murray Goulburn.
Despite these challenges, a recent move by Fonterra to offer a price step-up for the 2024-25 season might show willingness for change. Nevertheless, the ongoing discourse underscores the need for equitable pricing between Australian and New Zealand farmers, as many believe the processors prioritize profit over fair farmer compensation.
